Bengaluru [Karnataka]: The Karnataka government has approved major amendments to the Karnataka Rent Control Act, 1999, removing imprisonment clauses for rental disputes while introducing steep hikes in penalties ranging from 900% to 2,500%. The state cabinet cleared the amendments last week, and they are set to be tabled in the winter session of the legislature in Belagavi.

The move aligns state law with the central government’s Jan Vishwas Act, 2025, which focuses on replacing criminal provisions in minor offences with penalties and warnings.

Imprisonment scrapped, fines steeply increased

Under the earlier Act, both landlords and tenants could face imprisonment of up to one month for violations such as illegal eviction, unauthorised subletting, or providing false property details. Now, the state has scrapped imprisonment and replaced it with significantly higher monetary penalties.

For example, if a tenant is found guilty of subletting without authorisation, they will now face fines up to ₹50,000 or double the rent collected per month, whichever is higher. Previously, the fine stood at ₹5,000 or double the rent, along with possible jail time.

Similarly, landlords evicting tenants unlawfully—especially in cases where courts ordered re-letting—earlier risked imprisonment plus a fine of ₹5,000 or double the rent. Under the new provisions, landlords will instead face fines up to ₹50,000 or double the rent collected, whichever is more, without the threat of jail.

Real estate agents and middlemen under scanner

The amendments also bring real estate agents and middlemen under stricter financial scrutiny. Agents who fail to register with rent controllers will face a daily penalty of ₹20,000 until compliance, compared to earlier provisions of imprisonment plus smaller fines.

A real estate agent from North Bengaluru said, “While most agents associated with new properties have registered with RERA as channel partners, very few are aware that they must also register with the government to resell these properties.”

Rent controllers to enforce penalties

To speed up dispute resolution and reduce the judiciary’s burden, the government has empowered rent controllers with adjudication powers. Assistant commissioners (ACs) will serve as rent controllers within municipal limits, while tahsildars will handle urban and rural jurisdictions.

These rent controllers will now directly oversee disputes between landlords and tenants, enforce penalties, and ensure compliance with the revised Act.

Why it matters

Rental disputes have long been a flashpoint in Karnataka, especially in Bengaluru, where rising property values and housing demand create frequent conflicts. By removing jail terms but imposing hefty fines, the government hopes to discourage violations while reducing pressure on courts.

At the same time, the steep rise in penalties has raised concerns among both landlords and tenants, who fear that the financial burden may prove disproportionate in certain cases.

Conclusion

With the new amendments, Karnataka joins the central government’s push to decriminalise minor offences while ensuring stricter financial accountability. While the absence of jail terms is expected to reduce legal harassment, the steep penalties—up to 25 times higher than before—are likely to reshape the dynamics of landlord-tenant relationships across the state.